Core Insights - Deposit account rates are declining, but competitive returns on certificates of deposit (CDs) can still be locked in, with the best CDs offering rates above 4% [1] Group 1: Current CD Rates - The best short-term CDs (six to 12 months) currently offer rates around 4% to 4.5% APY, with the highest rate at 4.1% APY available from Marcus by Goldman Sachs, Sallie Mae, and Synchrony [2] Group 2: Historical Trends - CD rates were relatively high in the early 2000s but began to decline due to economic slowdowns and Federal Reserve rate cuts, with average one-year CDs at around 1% APY by 2009 [3] - The trend of falling CD rates continued into the 2010s, with average rates for 6-month CDs dropping to about 0.1% APY by 2013 [4] - Between 2015 and 2018, CD rates improved slightly as the Fed increased rates, but the COVID-19 pandemic led to emergency rate cuts, causing new record lows for CD rates [5] - Following the pandemic, the Fed hiked rates 11 times between March 2022 and July 2023, resulting in higher APYs for savings products, including CDs [6] Group 3: Future Expectations - As of September 2024, the Fed has started cutting the federal funds rate, leading to a decrease in CD rates from their peak, although they remain high by historical standards [7] - Traditionally, longer-term CDs offered higher interest rates, but currently, the highest average CD rate is for a 12-month term, indicating a flattening or inversion of the yield curve [8] Group 4: Choosing the Best CD - When selecting a CD, factors such as goals, type of financial institution, account terms, and inflation should be considered to ensure the best fit for individual needs [9]

Core Insights - Deposit account rates are declining, but competitive returns on certificates of deposit (CDs) can still be locked in, with the best CDs offering rates above 4% [1] Group 1: Current CD Rates - The best short-term CDs (six to 12 months) currently offer rates around 4% to 4.5% APY, with the highest rate at 4.1% APY available from Marcus by Goldman Sachs, Sallie Mae, and Synchrony [2] - The trend of falling CD rates has been observed, with historical data showing significant declines following economic downturns and Federal Reserve rate cuts [3][4][5] Group 2: Historical Context - CD rates were relatively higher in the early 2000s but fell significantly after the 2008 financial crisis, with average one-year CDs at around 1% APY by 2009 [3] - The Federal Reserve's policies, particularly the near-zero benchmark interest rate, led to very low CD rates throughout the 2010s, with average rates dropping to about 0.1% APY for 6-month CDs by 2013 [4] Group 3: Recent Developments - The Federal Reserve increased rates between 2015 and 2018, leading to a slight improvement in CD rates, but the COVID-19 pandemic caused emergency rate cuts, resulting in record low CD rates [5][6] - Following the pandemic, inflation prompted the Fed to hike rates 11 times from March 2022 to July 2023, leading to higher APYs on savings products, including CDs [6] Group 4: Understanding CD Rates - Traditionally, longer-term CDs offered higher interest rates, but current trends show the highest average CD rate is for a 12-month term, indicating a flattening or inversion of the yield curve [7][8] - When choosing a CD, factors such as goals, type of financial institution, account terms, and inflation should be considered to maximize returns [9]

Core Insights - Deposit account rates are declining, but competitive returns on certificates of deposit (CDs) can still be locked in, with the best CDs offering rates above 4% [1] Group 1: Current CD Rates - The best short-term CDs (six to 12 months) currently offer rates around 4% to 4.5% APY, with the highest rate at 4.2% APY for a 2-year CD from United Fidelity Bank and a 7-month CD from First National Bank of America [2] - CD rates are significantly higher than traditional savings accounts, making them an attractive option for savers [2] Group 2: Historical Context - CD rates were relatively high in the early 2000s but began to decline due to economic slowdowns and Federal Reserve rate cuts, with average one-year CDs at around 1% APY by 2009 [3] - The trend of falling CD rates continued into the 2010s, with average rates for 6-month CDs dropping to about 0.1% APY by 2013 [4] - A slight improvement in CD rates occurred between 2015 and 2018 as the Fed gradually increased rates, but the COVID-19 pandemic led to emergency rate cuts, causing new record lows [5] Group 3: Recent Developments - Following the pandemic, inflation prompted the Fed to hike rates 11 times between March 2022 and July 2023, resulting in higher APYs on savings products, including CDs [6] - As of September 2024, the Fed began cutting the federal funds rate, leading to a decrease in CD rates from their peak, although they remain high by historical standards [7] Group 4: Understanding CD Rates - Traditionally, longer-term CDs offer higher interest rates, but currently, the highest average CD rate is for a 12-month term, indicating a flattening or inversion of the yield curve [8] - When choosing a CD, factors such as goals, type of financial institution, account terms, and inflation should be considered to ensure the best fit for individual needs [9]

Core Insights - Deposit account rates are declining, but competitive returns on certificates of deposit (CDs) can still be locked in, with the best CDs offering rates above 4% [1] Group 1: Current CD Rates - The best short-term CDs (six to 12 months) currently offer rates around 4% to 4.5% APY, with the highest rate at 4.25% APY for a 6-month CD from Marcus by Goldman Sachs as of September 24, 2025 [2] - Historical trends show that average one-year CDs paid around 1% APY by 2009, with five-year CDs at less than 2% APY following the 2008 financial crisis [2] Group 2: Historical Context - The trend of falling CD rates continued into the 2010s, with average rates on 6-month CDs dropping to about 0.1% APY by 2013 [3] - The Federal Reserve's policies, particularly keeping the benchmark interest rate near zero, contributed to very low CD rates during this period [3] - Between 2015 and 2018, CD rates improved slightly as the Fed began to increase rates, but the COVID-19 pandemic led to emergency rate cuts, causing CD rates to fall to record lows [4] Group 3: Recent Developments - Following the pandemic, inflation prompted the Fed to hike rates 11 times between March 2022 and July 2023, resulting in higher APYs on savings products, including CDs [5] - As of September 2024, the Fed started cutting the federal funds rate, leading to a decrease in CD rates from their peak, although they remain high by historical standards [6] Group 4: Understanding CD Rates - Traditionally, longer-term CDs offer higher interest rates compared to shorter-term CDs, but the current highest average CD rate is for a 12-month term, indicating a flattening or inversion of the yield curve [6][7] - Factors to consider when choosing a CD include goals for locking away funds, type of financial institution, account terms, and inflation [8]